Applied Materials reported record second-quarter revenue of $7.91 billion. The company achieved non-GAAP earnings per share of $2.86. These results significantly exceeded analyst expectations. Revenue in the Semiconductor Systems division increased 10% year-over-year.
CEO Gary Dickerson expects the semiconductor equipment business to grow by more than 30% in calendar year 2026. This revised outlook reflects the rapid global build-out of AI computing. Demand for leading-edge logic and advanced packaging signals sustained multi-year growth.
The company released the report after the market closed on May 14. Multiple analysts raised their price targets on the stock on May 15. The news provided a positive catalyst for the AI hardware supply chain and the broader semiconductor sector, tracked by ETFs like SMH.